THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) completed a busy week with the announcement of a Farm-in Agreement with Gondwana Resources.
The Farm-I deal provides Calidus the right to earn up to 75 per cent of a promising exploration tenement (E46/1026) located just 75 kilometres from the company’s Warrawoona gold project in Western Australia.
The tenement is also located immediately along strike of the Blue Spec gold mine which is currently in the process of being acquired by Calidus.
“The farm-in arrangement with Gondwana provides Calidus with a low-cost consolidation opportunity in an underexplored and highly prospective mineral tenure along strike from the high-grade Gold Spec and Blue Spec deposits,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.
“This additional ground increases our critical mass around Blue Spec where we envisage a satellite mining operation providing ore to the central Warrawoona processing facility.
“The Blue Spec shear has been mapped on the tenement, however, there has been no historic drilling.
“We intend to start exploration next year.”
Under the Farm-in, Calidus can:
Stage 1: Earn up to 51 per cent interest with an initial minimum exploration expenditure commitment of $500,000 within 3 years from the commencement date.
Stage 2: Earn up to 75 per cent interest with a further $500,000 exploration expenditure commitment within 5 years of the commencement date.
If either party dilutes their interest to below 10 per cent the interest will automatically revert to a net smelter royalty of 1.5 per cent.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE